As previously announced, U.S. Cellular will hold a teleconference Feb. 26, 2013 at 9:30 a.m. CST. Listen to the live call via the Conference Calls page of www.teldta.com or www.uscellular.com.

United States Cellular Corporation (NYSE: USM) reported service revenues of $1,008.9 million for the fourth quarter of 2012, versus $1,030.0 million for the comparable period one year ago. Net loss attributable to U.S. Cellular shareholders was $39.6 million, or $0.47 per diluted share, for the fourth quarter of 2012. In the fourth quarter of 2011, net income attributable to U.S. Cellular shareholders was $2.8 million, or $0.03 per diluted share.

As previously announced on Nov. 7, 2012, U.S. Cellular reached a definitive agreement to sell its Chicago, St. Louis, central Illinois and three other markets (the "Divestiture Markets") to subsidiaries of Sprint Nextel Corporation (NYSE: S) for $480 million (the "Divestiture Transaction"). The transaction is subject to regulatory approvals and is expected to close in mid-2013. In the fourth quarter of 2012, U.S. Cellular's operating income was reduced by $44.5 million due to divestiture-related costs, including a $10.7 million write-down of assets, $12.6 million in employee-related costs, including severance, and $20 million in accelerated depreciation, amortization and accretion.

The table below provides pro forma performance highlights for U.S. Cellular's Total Consolidated Markets, Divestiture Markets, and Core Markets for the fourth quarter of 2012. Core Markets are the markets that U.S. Cellular will continue to own upon completion of the Divestiture Transaction.

($ in millions except ARPU)

Total Consolidated
Markets

Divestiture Markets
(1)

Core Markets (1)

Postpaid gross additions

241,000

23,000

218,000

Postpaid churn

1.83%

3.35%

1.67%

Postpaid net additions (losses)

(41,000)

(25,000)

(16,000)

Prepaid net additions (losses)

37,000

(1,000)

38,000

Service revenues (1)

$1,008.9

$101.4

$907.5

Postpaid ARPU (1)

$54.56

$60.91

$53.92

(1)

Total Consolidated Markets amounts represent GAAP financial measures and Divestiture Markets and Core Markets amounts represent non-GAAP financial measures. U.S. Cellular believes that the amounts under Divestiture Markets and Core Markets may be useful to investors and other users of its financial information.

The following table highlights the performance of the Core Markets for the fourth quarter of 2012 and 2011.

%

($ in millions except ARPU)

Q4 2012

Q4 2011

Change

Postpaid gross additions

218,000

209,000

4%

Postpaid churn

1.67%

1.48%

(13%)

Postpaid net additions (losses)

(16,000)

(2,000)

(>100%)

Prepaid net additions

38,000

6,000

>100%

Retail net additions

22,000

4,000

>100%

Service revenues (1)

$907.5

$917.5

(1%)

Postpaid ARPU (1)

$53.92

$52.62

2%

Smartphones sold as % of total devices

62.9%

52.6%

20%

4G/LTE smartphones as % of total smartphones sold

75%

0%

>100%

Capital expenditures (1)

$241

$253

(5%)

Cell sites in service

6,292

6,154

2%

Owned towers

3,847

3,755

2%

(1)

The Core Markets amounts for Q4 2012 and Q4 2011 represent non-GAAP financial measures. U.S. Cellular believes that the amounts under Core Markets may be useful to investors and other users of its financial information.

"Our aggressive sales and marketing strategies in the fourth quarter drove a strong increase in smartphone penetration, and encouraged more customers in more markets to migrate to 4G LTE," said Mary N. Dillon, U.S. Cellular president and CEO. "The announcement of the Divestiture Transaction resulted in an anticipated increase in postpaid churn and lower net additions in the Divestiture Markets. In our Core Markets, however, we had positive net retail additions in the quarter. The improved results were driven by prepaid additions, as postpaid additions continued to be negatively impacted by elevated churn.

"Smartphones were 63 percent of the devices we sold in our Core Markets during the quarter, and the number of 4G LTE smartphones sold nearly doubled from the third quarter. Although revenue from customers increased, overall service revenues declined due to reduced regulatory support revenues and lower roaming revenues as a result of lower negotiated rates. The lower negotiated rates also had a positive effect on roaming expense. Profitability was impacted by the lower service revenues and higher subsidies for 4G LTE smartphones in particular. As customers migrate to the more efficient 4G LTE network, we expect longer-term benefits, including growth in ARPU and lower capital expenditures for our legacy networks."

"We are moving forward rapidly on our strategies to differentiate our outstanding customer experience even further from our competitors. We're integrating and enhancing all of our channels to provide seamless shopping, and looking for more opportunities to expand distribution and be where our customers want to shop. As we continue to invest in our future through expanded 4G LTE access and devices, as well as the implementation of our new billing and operational system, we're also simplifying our operations and processes to increase efficiency and reduce complexity and cost.

"As we move through the regulatory approval process for the Divestiture Transaction, we're maintaining high-quality service and support for our customers in these markets, helping many of our associates to transition to new roles at U.S. Cellular, and preparing for a smooth transition later in 2013."

2013 ESTIMATES

U.S. Cellular's estimates of full-year 2013 results are shown below. Such estimates represent U.S. Cellular's views as of the date of filing of U.S. Cellular's Form 10-K for the year ended December 31, 2012. Such forward‑looking statements should not be assumed to be current as of any future date. U.S. Cellular undertakes no duty to update such information whether as a result of new information, future events or otherwise. There can be no assurance that final results will not differ materially from such estimated results.

U.S. Cellular has changed the measures which it uses to present estimates of operating results. U.S. Cellular previously presented Adjusted OIBDA, defined as operating income excluding the effects of: depreciation, amortization and accretion (OIBDA); the loss on impairment of assets; and the net gain or loss on asset disposals and exchanges. U.S. Cellular believes Adjusted income before income taxes, as defined below, is a measure which provides a more comprehensive and meaningful view of U.S. Cellular's recurring results of operations.

2013 EstimatedResults (1)

CoreMarkets (2)

DivestitureMarkets (2)(3)

U.S. Cellular
Consolidated (2)(3)

(Dollars in millions)

Service revenues

$3,600 - $3,700

$165 - $185

$3,765 - $3,885

Adjusted income before income taxes (4)

$765 - $865

$15 - $35

$780 - $900

Capital expenditures

Approx. $600

—

Approx. $600

(1)

These estimates are based on U.S. Cellular's current plans, which include a multi-year deployment of 4G LTE technology which commenced in 2011. New developments or changing conditions (such as, but not limited to, regulatory developments, customer net growth, customer demand for data services or possible acquisitions, dispositions or exchanges) could affect U.S. Cellular's plans and, therefore, its 2013 estimated results.

(2)

The U.S. Cellular Consolidated amounts represent GAAP financial measures and include the results of both the Core Markets and the Divestiture Markets. As used herein, "Core Markets" represents U.S. Cellular's total Consolidated Markets excluding the Divestiture Markets. The Core Markets and Divestiture Markets amounts represent non-GAAP financial measures. U.S. Cellular believes that the Core Markets and Divestiture Markets amounts may be useful to investors and other users of its financial information in evaluating the pro forma results for the Core Markets.

(3)

These estimates assume the Divestiture Transaction closes July 1, 2013. Actual effects could vary significantly from these estimates as a result of a change in the expected timing of the Divestiture Transaction.

(4)

Adjusted income before income taxes is a non-GAAP financial measure defined as income before: Income taxes, Depreciation, amortization and accretion, net Gain or loss on sale of business and other exit costs, and Interest expense. Adjusted income before income taxes is not a measure of financial performance under GAAP and should not be considered as an alternative to Income before income taxes as an indicator of the Company's operating performance or as an alternative to cash flows from operating activities, determined in accordance with GAAP, as an indicator of cash flows or as a measure of liquidity. U.S. Cellular believes Adjusted income before income taxes is a meaningful measure of U.S. Cellular's operating results before significant recurring non-cash charges, discrete gains and losses and financing charges (Interest expense). The following tables provide a reconciliation of Income before income taxes to Adjusted income before income taxes for 2013 Estimated Results and 2012, 2011and 2010 actual results:

2013 Estimated Results

CoreMarkets (2)

DivestitureMarkets (2)(3)

U.S. Cellular
Consolidated (2)(3)

(Dollars in millions)

Income before income taxes (5)

$165-$265

($180)-($160)

($15)-$105

Depreciation, amortization and

accretion expense (6)

Approx. $545

Approx. $195

Approx. $740

Interest expense

Approx. $55

—

Approx. $55

Adjusted income before income taxes

$765 - $865

$15 - $35

$780 - $900

U.S. Cellular Consolidated Actual Results

Year Ended December 31,

2012

2011

2010

(Dollars in millions)

Income before income taxes

$

205.1

$

312.8

$

241.1

Depreciation, amortization and

accretion expense (6)

608.6

573.6

571.0

(Gain) loss on sale of business and other exit costs, net

21.0

-

-

Interest expense

42.4

65.6

61.6

Adjusted income before income taxes

$

877.1

$

952.0

$

873.7

(5)

This amount does not include any estimate for (Gain) loss on sale of business and other exit costs, net, as the timing of such amount is not readily estimable.

(6)

The 2013 estimated amounts for depreciation, amortization and accretion expense in the Divestiture Markets include approximately $120 million of incremental accelerated depreciation resulting from the Divestiture Transaction. The 2012 actual results include $20.1 million of incremental accelerated depreciation resulting from the Divestiture Transaction.

Conference Call Information

U.S. Cellular will hold a conference call on Feb. 26, 2013 at 9:30 a.m. CST.

Access the call by phone at 877/407-8029 (US/Canada), no pass code required.

Before the call, certain financial and statistical information to be discussed during the call will be posted to the Conference Calls page of uscellular.com. The call will be archived on the Conference Calls page of uscellular.com.

About U.S. Cellular®

United States Cellular Corporation provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to 5.8 million customers in 26 states. The Chicago-based company had 8,100 full- and part-time associates as of Dec. 31, 2012. At the end of the year, Telephone and Data Systems, Inc. owned 84 percent of U.S. Cellular. For more information about U.S. Cellular, visit uscellular.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: impacts of the Divestiture Transaction including, but not limited to, the ability to obtain regulatory approvals, successfully complete the transaction and the financial impacts of such transaction; the ability of the company to successfully manage and grow its markets; the overall economy; competition; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings afforded our debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; uncertainty of access to the capital markets; pending and future litigation; changes in income tax rates, laws, regulations or rulings; acquisitions/divestitures of properties and/or licenses; and changes in customer growth rates, average monthly revenue per user, churn rates, roaming revenue and terms, the availability of handset devices, or the mix of products and services offered by the company. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K Current Report used by U.S. Cellular to furnish this press release to the Securities and Exchange Commission ("SEC"), which are incorporated by reference herein.

For more information about U.S. Cellular, visit uscellular.com.

United States Cellular Corporation

Total Markets Summary Operating Data (Unaudited)

Quarter Ended

12/31/2012

9/30/2012

6/30/2012

3/31/2012

12/31/2011

Total population

Consolidated markets (1)

93,244,000

92,996,000

92,684,000

92,684,000

91,965,000

Consolidated operating markets (1)

46,966,000

46,966,000

46,966,000

46,966,000

46,888,000

Market penetration at end of period

Consolidated markets (2)

6.2%

6.2%

6.3%

6.3%

6.4%

Consolidated operating markets (2)

12.3%

12.4%

12.3%

12.4%

12.6%

All customers

Total at end of period

5,798,000

5,808,000

5,799,000

5,837,000

5,891,000

Gross additions

363,000

364,000

290,000

285,000

306,000

Net additions (losses)

(10,000)

9,000

(38,000)

(49,000)

(41,000)

Smartphones sold as a percent

of total devices sold (3)

62.9%

53.0%

51.9%

54.1%

52.5%

Retail customers

Total at end of period

5,557,000

5,561,000

5,542,000

5,570,000

5,608,000

Postpaid smartphone penetration (3) (4)

41.8%

38.6%

36.8%

34.4%

30.5%

Gross additions

348,000

350,000

277,000

273,000

298,000

Net retail additions (losses) (5)

(4,000)

19,000

(28,000)

(34,000)

(13,000)

Net postpaid additions (losses)

(41,000)

(38,000)

(48,000)

(38,000)

(20,000)

Net prepaid additions (losses)

37,000

57,000

20,000

4,000

7,000

Service revenue components (000s)

Retail service

$

886,014

$

884,219

$

889,219

$

888,527

$

882,091

Inbound roaming

76,090

106,132

86,363

80,132

93,353

Other

46,820

46,019

54,160

55,161

54,601

Total service revenues (000s)

$

1,008,924

$

1,036,370

$

1,029,742

$

1,023,820

$

1,030,045

Total ARPU (6)

$

58.00

$

59.57

$

59.05

$

58.21

$

58.13

Billed ARPU (7)

$

50.94

$

50.83

$

50.99

$

50.52

$

49.78

Postpaid ARPU (8)

$

54.56

$

54.34

$

54.42

$

54.00

$

53.35

Postpaid churn rate (9)

1.8%

1.7%

1.6%

1.6%

1.6%

Capital expenditures (000s)

$

253,100

$

199,100

$

183,200

$

201,300

$

276,400

Cell sites in service

8,028

7,984

7,932

7,875

7,882

(1)

Used only to calculate market penetration of consolidated markets and consolidated operating markets, respectively. See footnote (2) below.

(2)

Market Penetration is calculated by dividing the number of wireless customers at the end of the period by the total population of consolidated markets and consolidated operating markets, respectively, as estimated by Claritas®.

Total ARPU - Average monthly service revenue per user includes retail service, inbound roaming and other service revenues and is calculated by dividing total service revenues by the number of months in the period and by the average total customers during the period.

(7)

Billed ARPU - Average monthly billed revenue per user is calculated by dividing total retail service revenues by the number of months in the period and by the average total customers during the period. Retail service revenues include revenues attributable to postpaid, prepaid and reseller customers.

(8)

Postpaid ARPU - Average monthly revenue per postpaid user is calculated by dividing total retail service revenues from postpaid customers by the number of months in the period and by the average postpaid customers during the period.

(9)

Represents the percentage of the postpaid customer base that disconnects service each month. This amount represents the average postpaid churn rate for each respective quarterly period.

United States Cellular Corporation

Consolidated Statement of Operations Highlights

Three Months Ended December 31,

(Unaudited, dollars and shares in thousands, except per share amounts)

Adjusted OIBDA is defined as operating income excluding the effects of: depreciation, amortization and accretion (OIBDA); the loss on impairment of assets (if any); the net gain or loss on asset disposals and exchanges (if any); and the net gain or loss on sale of business and other exit costs (if any).

(2)

Adjusted OIBDA margin is defined as adjusted OIBDA divided by service revenues. Equipment revenues are excluded from the denominator of the calculation since equipment is generally sold at a net loss, and such net loss is included in adjusted OIBDA as a cost of earning service revenues for purposes of assessing business results. U.S. Cellular believes that this calculation method is consistent with the method used by certain investors to assess U.S. Cellular's business results. Adjusted OIBDA margin may also be commonly referred to by management as operating cash flow margin. U.S. Cellular believes this measure provides useful information to investors regarding U.S. Cellular's financial condition and results of operations because it highlights certain key cash and non-cash items and their impacts on cash flows from operating activities.

(3)

Free cash flow is defined as cash flows from operating activities less Cash used for additions to property, plant and equipment. Free cash flow is a non-GAAP financial measure. U.S. Cellular believes that free cash flow asreported by U.S. Cellular may be useful to investors and other users of its financial information in evaluating the amount of cash generated by business operations, after consideration of capital expenditures.

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